The best charities are more and more effective. It’s clear a message sent by Open Philanthropy, the think tank that also serves as a grant vehicle for Facebook co-founder Dustin Moskovitz and his wife Cari Tuna.
Why is this important: With technology and crypto wealth becoming a rapidly growing part of the philanthropic pie, the emphasis is more than ever on efficiency – something newly divorced Melinda French Gates in her recent Giving Pledge update, characterizes the fact of giving as much “as impactful as possible”.
Driving the news: Open philanthropy announcement in November that he increased his annual grant to GiveWell, another organization dedicated to maximizing philanthropy “to get your money’s worth.” After giving $ 100 million in 2020, Open Philanthropy will give $ 300 million this year, and $ 500 million per year in 2022 and 2023.
- The $ 500 million a year is expected to continue indefinitely, largely thanks to the fact that Moskovitz, like most billionaires, has seen his net worth. ascend in recent years. (It helps that in addition to his gravity-defying Facebook stocks, he also owns a $ 7 billion stake in Asana, the second company he founded.)
- The trap : Open Philanthropy is not happy that GiveWell is giving its money to the best charities it can find this year. Instead, it is rolling over about $ 110 million to spend next year, or maybe a few years in the future.
The big picture: Until now, GiveWell has been strapped for cash, explains growth manager Ben Bateman at Axios.
- With the influx of new funds, this calculation changes: GiveWell may to broaden its analysis to go beyond its current main recommendations.
- Organizations expect that at the end of the day, they will be able to spend all the money in a way that is at least five times more efficient than giving money directly to the world’s poorest people – something that can be done through GiveDirectly, a GiveWell charity supported with $ 25 million in 2015.
The other side: GiveDirectly is critical of Open Philanthropy’s decision, stating, “We think GiveWell is thinking too small, underestimates what can be achieved today, underestimates wait costs, overestimates how better they will allocate funds in the future and does not take into account the views of people living in poverty. “
Between the lines: GiveDirectly is a favorite from the crypto crowd, with around 17% of its budget in crypto form. he received $ 1 million from the creator of Ethereum Vitalik Buterin, $ 2.5 million by Jack Dorsey, and $ 5 million of the Pineapple Fund funded by Bitcoin. He also received $ 50 million by MacKenzie Scott, part of an astonishing $ 2.7 billion she gave this year.
- GiveDirectly’s dream is that crypto donations can go directly to the poor of the world, transparently.
- “When you can follow the funds up to the final beneficiary, “Binance founder Changpeng Zhao – known as CZ, you feel like you know the person, which in turn means” greater satisfaction “for the donor, told Axios. .
For memory : “I plan to donate 99% of my personal wealth before I die,” CZ says. “If you are making money, it is natural to want to give back. It is also the highest form of satisfaction.”
- This is a big deal, because CZ may already be the richest person in the world, according to the whale hunting bulletin.